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Targeted poverty alleviation disclosure and analyst forecast accuracy: Evidence from a quasi-natural experiment

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  • Wu, Wenxin
  • Xu, Minya
  • Zhou, Zixun

Abstract

Using the Targeted Poverty Alleviation (TPA) disclosure policy in China as a quasi-natural experiment, this paper analyzes the impact of firm TPA disclosure on analyst forecast accuracy based on a staggered difference-in-differences model. The results show a significant increase in the accuracy of analysts’ forecasts after firms’ disclosure of TPA information, and this effect is more pronounced for firms with greater information processing cost and firms with fewer covering analysts. Our study provides empirical evidence for regulators concerned with the information environment of capital market.

Suggested Citation

  • Wu, Wenxin & Xu, Minya & Zhou, Zixun, 2023. "Targeted poverty alleviation disclosure and analyst forecast accuracy: Evidence from a quasi-natural experiment," Finance Research Letters, Elsevier, vol. 54(C).
    • Handle: RePEc:eee:finlet:v:54:y:2023:i:c:s154461232300140x
    DOI: 10.1016/j.frl.2023.103767
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    References listed on IDEAS

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    More about this item

    Keywords

    Targeted poverty alleviation; ESG; Analyst forecast; Information environment;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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